Foreclosure Mediation: Designed to Resolve Mortgage Problems

by on Mortgage

For a homeowner about to face foreclosure, it is important that communication with the lender is explored and maximized in order to avoid such unfortunate situation. But in many cases, the only time that these distressed homeowners were able to speak with their lenders is during the foreclosure court hearing. For judges in Orlando (Florida), ordering foreclosure mediation seems like the best way to help both lenders and troubled borrowers.

Since Florida is one of the states hit hardest by the foreclosure crisis, it is not surprising that everyone in this state have been helping out just to curb the rising foreclosure rate. Not only will the number of homeless families be minimized but it will also protect the local economy.

With the court ordering lenders and distressed homeowners to undergo foreclosure mediation, it is expected that more homeowners will be able to stay in their homes and curb the rising foreclosure rate in the state.

During foreclosure mediation, homeowners and lenders are able to discuss the problems involving the mortgage with an impartial and neutral third party. It is the only venue that will allow homeowners to face their lenders and explore different options to stop foreclosure.

Sometimes an amicable settlement is reached by the two parties and sometimes not. In any case, it is important for the homeowner to have this chance to work out their mortgage troubles. Even the lenders are given the opportunity to save on foreclosure costs by considering other alternatives including loan modification.

In order to ensure that foreclosure mediation is successful, troubled borrowers are advised to be prepared. All financial documents that show the real financial situation should be presented so that the lender could see the entire picture. By doing so, the lenders will also believe that you are serious with avoiding foreclosure.